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ROCHESTER, N.Y., Oct. 04, 2019 (GLOBE NEWSWIRE) -- Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, today announced a quarterly distribution of $0.2350 per share for Class I and $0.2275 for Class W. This equates to an annualized distribution rate1 of 8.7% for Class I shares and 8.4% for Class W shares. The distribution will be payable on October 7, 2019 to shareholders of record as of September 27, 2019. BDREX is managed by Broadstone Real Estate, LLC (“Broadstone”).
“We are very pleased that performance of the Fund has been such that its operations support us making a larger than normal distribution,” stated Kate Davis, Broadstone Real Estate Access Fund President and Portfolio Manager. “As we approach the Fund’s one-year track record, total return2 inception-to-date is 14.96% for Class I and 14.74% for Class W shares.”
2Performance data quoted represents past performance. For BDREX’s most recent performance data, please visit the Fund’s performance page.
BDREX is available in two share classes: Class W (BDRWX) and Class I (BDREX). The minimum initial investment is $2,500 for Class W shares and $1 million for Class I shares. Class I was created to serve the clients of Registered Investment Advisers (RIAs) and Wealth Managers, and provide a reduced-fee share class to individual investors seeking to invest more than $1 million. RIAs and Wealth Managers investing in Class I must achieve an aggregate of $1 million in BDREX investment across their client base.
ALPS Fund Services, Inc. and ALPS Distributors, Inc. serve as the Fund’s Administrator and Distributor, respectively. DST Systems, Inc. the parent company of the Distributor, serves as the Transfer Agent to the Fund. Heitman Real Estate Securities LLC (“Heitman”) serves as the Fund’s Sub-Adviser, and has delegated investment discretion for making the Fund’s investments that are allocated to publicly traded commercial real estate (“CRE”) securities. UMB Bank, N.A. serves as the Fund’s Custodian.
About Broadstone Real Estate Access Fund:
BDREX is a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, that deploys investor capital into a diversified pool of actively managed real estate holdings, blending investment in direct individual real estate transactions; private real estate funds; and public real estate securities. Investors may benefit from the access and diversification afforded by the Fund, along with its periodic liquidity and daily pricing features. BDREX is open for investment to individual and institutional investors with a minimum initial investment of $2,500 for Class W shares and $1 million for Class I shares. All prospective investors are invited to download an investor kit: broadstone.com/lp/BDREX
Class I gross expenses are 3.32% and net expenses after fee waiver and reimbursement are 2.50%, Class W gross expenses are 3.57% and net expenses after fee waiver and reimbursement are 2.75%. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until September 25, 2020 to ensure that the net annual fund operating expenses will not exceed 1.74% for Class I and 1.99% for Class W, subject to possible recoupment from the Fund in future years. Please review the Fund’s Prospectus for more detail on the expense waiver.
An interval fund, such as BDREX, is a continuously offered, closed-end investment company that periodically offers to repurchase its shares from shareholders. The number of shares that BDREX will offer to repurchase will be determined by its Board of Trustees on a quarterly basis. Redemptions within 90 days of purchase may be subject to a fee. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in any repurchase offer.
The Fund’s shares will not be listed on an exchange and it is not anticipated that a secondary market will develop. The Fund is a new company and has no operating history. An investment is not suitable for investors that require liquidity. Investing in BDREX involves risks, including loss of principal and the other risks set forth in the “Risk Factors” section of the prospectus.
Because BDREX’s direct real estate investments will be relatively illiquid, the Fund may not be able to vary its portfolio in response to changes in economic and other conditions, which may result in losses to the Fund. The bankruptcy, insolvency or financial deterioration of any of the tenants of the Fund’s direct real estate investments could significantly delay the ability to collect unpaid rents or require the Fund to find new tenants. With respect to BDREX’s investments in private real estate investment funds, the Fund may not have the sole decision-making authority over such funds and may be unable to take actions to protect its interests in these investments. The Fund may be subject to additional risks if it fails to meet a capital call from a private real estate investment fund and the underlying fund may pursue investment strategies that compete with each other or do not align with those of the Fund. BDREX’s investments in the securities of publicly traded REITs will be subject to the risks affecting these REITs directly.
AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. TO OBTAIN A PROSPECTUS CONTAINING THIS AND OTHER INFORMATION, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR VISIT WWW.BDREX.COM. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.
The Fund is distributed by ALPS Distributors, Inc. (ALPS). ALPS is not affiliated with BDREX, Broadstone Real Estate, LLC, Heitman Real Estate Securities LLC, or UMB Bank, NA.
1 The distribution rate is the amount, expressed as a percentage, a Fund investor would have received in distributions on an annualized basis divided by the Fund’s public offering price on September 30, 2019. The annualized distribution represents a single distribution from the Fund and does not represent the total returns of the Fund. Distributions may include a return of the money that shareholders originally invested and represent a return of capital to shareholders for tax purposes and may include other non-income sources. Distributions over the time period indicated above were fully covered by the fund’s free cash flow from operations and do not include a return of capital. Distributions are not guaranteed.